Computation
The following steps should be taken to determine the Average Indexed Monthly Earnings:
- Determine the Base Years (BY) (see Primary Insurance Amount#1978 New Start Method)
- Select the highest years of indexed and unindexed earnings to serve as Computation Years (CY) in the amount of the number of BY
- Add the indexed and unindexed earnings in the CYs to come up with the dividend
- Divide the dividend by divisor months (see Primary Insurance Amount#1978 New Start Method) to get the Average Indexed Monthly Earnings
- Round the Average Indexed Monthly Earnings down to the nearest dollar
Read more about this topic: Average Indexed Monthly Earnings
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